New Delhi: Jubilant Pharmova Ltd on Friday said its arm, Jubilant Generics Ltd, has received a show-cause notice from the Uttarakhand GST authority demanding Rs 105.5 crore, including a penalty over availment of tax refund.
The Joint Commissioner, CGST Division, Roorkee, Uttarakhand, has issued the notice to Jubilant Generics for allegedly availing of IGST refund under Rule 96 and benefit of Advance Authorisation Scheme simultaneously in violation of rules for the 2020-21 and 2021-22 fiscal years, Jubilant Pharmova Ltd said in a regulatory filing.
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The Advance Authorisation Scheme allows duty-free import of inputs for export products.
The notice involves GST (Tax) of Rs 52.75 crore and a penalty amounting to Rs 52.75 crore, along with unquantified interest, it added.
Jubilant Pharmova said it will contest the notice and file its reply soon.
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"The show-cause notice is factually and legally incorrect, bad in law and has been issued without verifying the facts and examining the issue properly. The company has a strong case in its favour... (and) will file a detailed reply on merits before the Joint Commissioner, CGST Division, Roorkee," the company said in the filing.
The company added that it expects no financial or operational impact from the notice.
